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4 4. Suppose that your expectations regarding the stock price are as follows: Price State Boom Normal Recession Probability 0.35 0.30 $140 $110 $80 Rate

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4. Suppose that your expectations regarding the stock price are as follows: Price State Boom Normal Recession Probability 0.35 0.30 $140 $110 $80 Rate of Return 44.5% 14% -16.5% 0.35 Compute the mean and standard deviation of the return on the stock

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